We all have bad habits.
We leave our laundry on the bathroom floor. We bite our nails. We swear a little too often. We hit the snooze button four times in a row.
But maybe the most dangerous? Bad money habits.
Money habits can be difficult to break. Hell, sometimes they can be hard to spot just because they’re so deeply anchored in our daily lives.
But now is the time to recognize these dangerous financial habits – and break them – so you don’t miss out on a lot more money.
1. You leave your money in a savings account
You’ve probably heard that the best way to grow your money is to put it in a savings account and keep it there for, well, forever. That is bad advice.
But maybe you’re just looking for a place to safely store it – and still make money. Nothing will help you under your mattress or in a safe. And a typical savings account isn’t going to do you much better. (Ahem, 0.09% is nothing these days.)
But you can earn up to 5% cashback with a debit card called Aspiration and up to 11 times the average interest on the money in your account.
Not too shabby!
Enter your email address here and link your bank account to see how much extra cash you can get with your free Aspiration account. And don’t worry. Your money is FDIC insured and is subject to military encryption. This is nerd talk for “that’s perfectly safe”.
2. You are not setting aside a million dollars for your family
Have you ever thought about how your family would do without your income in your absence? How are they going to pay the bills? Send the kids through school? Now is a good time to start planning for the future with term life insurance.
Many of us assume that our savings are sufficient. Or that you will have to worry about it later because you don’t have the time or money to do it right now. But your application can take minutes – and you could leave your family up to $ 1 million with a company called Bestow.
Prices start at just $ 16 per month. Knowing that your family is being cared for is priceless.
If you’re under 54 and want a quick quote on life insurance without a medical exam or even getting up from the couch, get a free quote from Bestow.
3. You don’t put $ 5 on the market
Take a look at the Forbes Richest People list and you will find that almost all billionaires have one thing in common – they own another business.
But unless you work for a living, and you don’t happen to have millions of dollars lying around, you probably assume that this is completely out of reach.
That’s why a lot of people use the Stash app. It allows you to be part of something normally only reserved for the richest of the rich – by buying parts of other companies for as little as $ 1.
That’s right – you can invest in chunks of well-known companies like Amazon, Google, or Apple for as little as $ 5.
The best part? If these companies benefit, so can you. Some companies even send you a quarterly check for your share of the profits called dividends.
It takes two minutes to sign up and Stash gives you a $ 5 sign up bonus once you deposit $ 5 into your account.
4. You retain a low credit score for no reason
We get it. It is so easy to have your credit declined. You can’t do anything about that anyway, can you? At some point it will take care of itself.
But as soon as you buy a home, take out a car loan, or even open a credit card, you will immediately regret these assumptions.
The truth is, your creditworthiness plays a huge role in some of your biggest financial decisions, but getting them on the right track doesn’t have to be that difficult thanks to a free website called Credit Sesame.
Within two minutes, you’ll have access to your credit history, all debtor accounts, and a handful of personalized tips for improving your score. You can even spot bugs that are holding you back (every fifth report has one).
Atlanta-based James Cooper used Credit Sesame to add nearly 300 points to his credit rating in six months. * “They showed me the ins and outs – how to puncture the I’s and cross the T’s,” he said.
Getting your free credit score will take less than two minutes.
5. They assume that you already know everything
When it comes to managing your money, it is important to keep learning. It sounds cheesy, but it’s all too easy to assume that you already know everything you need to know.
Instead, try to learn more about investing, saving, and budgeting through websites, podcasts, and books.
Here are some of our recommendations (besides The Penny Hoarder, of course):
- Podcast “How To Make Money”
- “The Total Money Makeover” by Dave Ramsey
- Podcast “The Side Hustle Show”
- “Rich Father, Poor Father” by Robert Kiyosaki
- “The Money Nerds Podcast”
- “The Richest Man of Babylon” by George Samuel
6. You keep wasting hundreds of home insurance policies
You are probably wasting money right now. And it’s probably due to something you would never expect – your home insurance.
You don’t actively think about it. You just know you have to have it, so stick with it forever, right?
Not correct. The problem is, you pay too much. Fortunately, an insurance company called Policygenius makes it easy to find out how much you are overpaying.
In fact, it saves users an average of $ 690 per year – or $ 57.50 per month. It will even help you part with your old insurance company. (You can cancel your policy at any time and your company should issue you a refund.)
And just because you’re saving money doesn’t mean you’re saving on coverage. Policygenius makes sure you have what you need.
Just answer a few questions about your home to get started.
7. You have not canceled your car insurance
People like to tell you to look around. “You should get three different quotes to get the best auto insurance rate,” they say.
That sounds like good advice, of course. That’s why it’s wrong: just comparing three companies is nowhere near enough. We suggest comparing dozens. But who has time for that?
A digital marketplace called SmartFinancial will do that for you. You could get prices as low as $ 22 a month – and save yourself more than $ 700 a year.
It takes a minute to get quotes from multiple insurers so you can see the best rates side by side. Yes – in just one minute you could save yourself $ 715 this year. That’s a lot of money back in your pocket.
So if you haven’t checked car insurance rates in a while, see how much you can save with a new policy.
8. You leave $ 225 every month
No matter who you are or what your budget is, it’s always nice to have an extra income. But how can you do that without a raise?
What if we told you that a research company would pay you to watch cooking videos on your computer?
It’s too good to be true, isn’t it?
But we’re serious. InboxDollars pays you to watch short video clips online. One minute you might see someone baking brownies and the next you will get the latest updates on the Kardashian drama.
All you have to do is choose which videos you want to watch and then answer a few quick questions about them.
No, InboxDollars aren’t going to replace your full-time job, but it’s something simple that you can do while you’re already on the couch tonight, wasting time on your phone. It is possible to make up to $ 225 per month by watching these videos.
It has already paid more than $ 56 million to its users.
It takes about a minute to sign up and you will instantly receive a $ 5 bonus to get started.
9. You are paying more than $ 5 / month for cellular service
Many of us assume we only have to pay more than $ 100 for cellular service each month, but there are actually plenty of discount options – that really work.
How long have you been with your current company? Probably a while, right? Which means you are probably paying way too much.
But we did find a cheap cellphone company called Tello Mobile that offers plans starting at just $ 5 a month. How much are you paying now Exactly. Imagine cutting that down to just $ 5.
Tello recently switched to a nationwide GSM network, which means improved 4G LTE / 5G coverage, faster data speeds and a more stable network. You can choose a wireless plan based on the number of minutes and the amount of data you want, and you can even use Tello’s coverage tool to see how strong the network is where you live. More than 7,000 customers have given it an excellent rating on Trustpilot.
Tello is also super flexible. You can choose the plan that makes sense for you. Tariffs are calculated based on the amount of data and the minutes desired. For example, a family of four can get 2GB of data each, plus unlimited calls and text messages for just $ 56 a month. Free hotspot and unlimited SMS are included with every plan. In addition, there are no early termination or activation fees, no contracts or exclusive telephone tariffs, and no tricks of any kind.
It’s easy to get started and see how much you can save. Tello makes it easy to switch and even keep your phone number. You don’t even have to leave the house – everything can be done online. You can bring your own GSM phone or use it to buy a new one. See how much you could save.
Carson Kohler ([email protected]) is an employee at The Penny Hoarder.
*To like Cooper, 60% of Credit Sesame members see an improvement in their credit score; 50% see an increase of at least 10 points and 20% an increase of at least 50 points after 180 days.
Credit Sesame does not guarantee any of these results, and some may even experience a decrease in their credit score. Any improvement in score is the result of many factors including paying bills on time, keeping funds low, avoiding unnecessary inquiries, proper financial planning, and developing better credit habits.